Holding Company (Parent Company) - Meaning, Examples, Rights & Responsibility

In this video on Holding Company (Parent Company), here we discuss a parent company's relationship with a subsidiary company and rights and responsibilities of holding company's.

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐇𝐨𝐥𝐝𝐢𝐧𝐠 𝐂𝐨𝐦𝐩𝐚𝐧𝐲 (𝐏𝐚𝐫𝐞𝐧𝐭 𝐂𝐨𝐦𝐩𝐚𝐧𝐲)?
---------------------------------------------------------------------------------

The parent company or holding company is a firm with majority voting rights of other companies (subsidiary companies) to control the company's management and operations.

𝐑𝐢𝐠𝐡𝐭𝐬 𝐨𝐟 𝐇𝐨𝐥𝐝𝐢𝐧𝐠 𝐂𝐨𝐦𝐩𝐚𝐧𝐲
-----------------------------------------------------

#1 - Holds more than 50% of the subsidiary's rights.
#2 - Controlling power over the subsidiary firm.
#3 - Maintains voting rights for the subsidiary.

𝐑𝐞𝐬𝐩𝐨𝐧𝐬𝐢𝐛𝐢𝐥𝐢𝐭𝐲 𝐨𝐟 𝐏𝐚𝐫𝐞𝐧𝐭 𝐂𝐨𝐦𝐩𝐚𝐧𝐲
----------------------------------------------------------------

#1 - Responsible for the subsidiary's tax obligations.
#2 - Responsible for the business operation and resource management of the sister concern at its location.
#3 - Sometimes in their financial needs they serve as a guarantor for the subsidiary.

To know more about 𝐇𝐨𝐥𝐝𝐢𝐧𝐠 𝐂𝐨𝐦𝐩𝐚𝐧𝐲 (𝐏𝐚𝐫𝐞𝐧𝐭 𝐂𝐨𝐦𝐩𝐚𝐧𝐲), you can go to this 𝐥𝐢𝐧𝐤 𝐡𝐞𝐫𝐞:- https://www.wallstreetmojo.com/holding-parent-company/

Connect with us!
Youtube ► https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1
LinkedIn ► https://www.linkedin.com/company/wallstreetmojo/mycompany/
Facebook ► https://www.facebook.com/wallstreetmojo
Instagram ► https://www.instagram.com/wallstreetmojoofficial/
Twitter ► https://twitter.com/wallstreetmojo

Видео Holding Company (Parent Company) - Meaning, Examples, Rights & Responsibility канала WallStreetMojo